Goolsbee Warns Inflation Pressure Is Spreading Into Services

Chicago Fed President Austan Goolsbee said Tuesday, Nov. 10, that the latest government inflation report was distressing because officials had been hoping to see progress. He said price pressures appeared to be spreading beyond energy and artificial intelligence-related areas and into a wider range of prices, including services.

“Services inflation is not coming down,” Goolsbee said. He said the pressure likely was not driven mainly by oil prices, tariffs or other factors that could be temporary. He characterized inflation as a real issue that had been developing and said it would have to be addressed.

Goolsbee said he was concerned the pressure could reflect broader overheating in the economy. Prices across a range of areas, including services, were rising too quickly relative to the Federal Reserve’s 2% target, he said. His concern was that inflation was not confined to energy or AI-related areas.

His remarks follow an earlier warning that AI infrastructure investment could spread inflationary pressure beyond data centers.